Shareholders May Be Wary Of Increasing Tailam Tech Construction Holdings Limited's (HKG:6193) CEO Compensation Package

Key Insights

• Tailam Tech Construction Holdings will host its Annual General Meeting on 6th of June
• CEO Alice Wong's total compensation includes salary of CN¥1.46m
• Total compensation is similar to the industry average
• Over the past three years, Tailam Tech Construction Holdings' EPS fell by 83% and over the past three years, the total loss to shareholders 31%

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The results at Tailam Tech Construction Holdings Limited (HKG:6193) have been quite disappointing recently and CEO Alice Wong bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 6th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Tailam Tech Construction Holdings

Comparing Tailam Tech Construction Holdings Limited's CEO Compensation With The Industry

According to our data, Tailam Tech Construction Holdings Limited has a market capitalization of HK$88m, and paid its CEO total annual compensation worth CN¥1.5m over the year to December 2024. That's a notable decrease of 26% on last year. Notably, the salary which is CN¥1.46m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Basic Materials industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.4m. This suggests that Tailam Tech Construction Holdings remunerates its CEO largely in line with the industry average. Moreover, Alice Wong also holds HK$51m worth of Tailam Tech Construction Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Tailam Tech Construction Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Tailam Tech Construction Holdings Limited's Growth

Tailam Tech Construction Holdings Limited has reduced its earnings per share by 83% a year over the last three years. In the last year, its revenue is down 24%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Tailam Tech Construction Holdings Limited Been A Good Investment?

With a total shareholder return of -31% over three years, Tailam Tech Construction Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Tailam Tech Construction Holdings pays its CEO a majority of compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Tailam Tech Construction Holdings (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.